Quotation system and method

ABSTRACT

A quotation system and method are provided (see FIG. 1). A relational database ( 10 ) allows various departments ( 14, 16, 18, 20 ) to prepare a quotation. The relational database centralizes data to increase efficiency, and the data may be modified, as needed, for particular quotation solutions.

BACKGROUND OF THE INVENTION

[0001] 1. Field of the Invention

[0002] The present invention relates to a quotation system and method.

[0003] 2. Background Art

[0004] The existing process for preparing a quotation, morespecifically, a quotation for a custom-made product, is oftentimescumbersome and inefficient for a number of reasons. For example,automotive suppliers mass produce products that are uniquely designed tocustomer specifications for assembly into vehicles. The automotivesupplier uses a list of manufacturing processes and/or assemblycomponents that are purchased from sub-suppliers. An automotive supplieris typically given about ten days to respond to a customer request forquotation. Within this ten-day or other reasonably short period of time,a rigorous business process takes place whereby people from multipledepartments must contribute information and expertise to assess thedesign, manufacturing process, capacity, cost, investment, price,strategy, and logistics. Then, the supplier must submit its quotation ina format specified by the customer.

[0005] Due to the short period of time allowed by the customer for thesupplier to prepare the quotation, the supplier typically facesdifficult challenges when developing the quotation. For example, thesupplier is faced with applying enormous overhead to process a requestfor quotation through its system and deliver a quotation to the customerwithin the short period of time. For example, the supplier may sometimesskip some approval steps or make assumptions to ensure timely submissionof the quotation. This may result in inaccuracies and have undesirableresults, particularly in markets with thin margins. For example, thesupplier may be forced to deliver a late quotation due to the timeconstraints imposed by the customer. These are just a few examples ofthe difficulties faced by a supplier when preparing a quotation. Otherobstacles faced by the supplier include the fact that sometimesgeography and international borders separate contributors and approvers,making it difficult to manage and oversee the entire quotation process.

[0006] One technique for preparing quotations that is used today is aspreadsheet-based quotation technique. That is, various departments makecalculations using spreadsheets and pass these spreadsheets along toeach other using, for example, electronic mail. This results in databeing separated from its origin, being difficult to track, and beingnearly inaccessible for a subsequent analysis. As such, spreadsheetpassing techniques used today, although sometimes successful, do havetheir shortcomings. Although the example given above relatesspecifically to automotive suppliers, this is only exemplary, and otherindustries may face similar problems in preparing quotations.

[0007] In addition, some attempts have been made to develop quotationsoftware. Typically, existing quotation software involves substantialhard-coding and lacks the flexibility that is often needed to preparecustomized quotations, such as, for example, in the automotive industry.Many times, a supplier will have their own particular way of performingcost calculations, and does not want to be restricted to the hard-codedtechniques in the quotation software. Because existing quotationsoftware lacks the desirable flexibility, many suppliers have stayedaway from these existing software solutions. As a result, supplierscontinue to use spreadsheet passing techniques which, as describedabove, also have shortcomings. Examples of quotation systems and methodsare shown in U.S. Pat. Nos. 6,115,690; 5,970,476; 5,842,178; 5,717,924;5,249,120; 5,008,853; 4,992,940; 6,212,549; and 6,370,562.

[0008] For the foregoing reasons, there is a need for a quotation systemand method that overcomes the shortcomings of existing quotationpreparation techniques.

SUMMARY OF THE INVENTION

[0009] It is, therefore, an object of the present invention to providean improved quotation system and method that utilizes a relationaldatabase to centrally manage data accessed by multiple departmentsduring the preparation of a quotation for a customer.

[0010] In carrying out the above object, a quotation system and methodare provided. The system includes a relational database having a numberof relations to relate, for example, manufacturing processes, costparameters, calculations, and work flows so that various departments mayprepare a quotation with improved accuracy, reduced overhead expenses,and faster delivery.

[0011] In one example, a sales department, design engineeringdepartment, process engineering department, and purchasing departmentall have access to the relational database to facilitate preparation ofa quotation. The relational database provides centralized data thatovercomes limitations associated with spreadsheet passing and relatedmethods. In addition, the relational database provides flexibility inthat relational database data may be modified or added to change the waycalculations are performed. The ability to modify the data in therelational database overcomes limitations associated with hard-codedquotation software solutions. As such, systems and methods of thepresent invention allow a supplier, with various departments, toefficiently prepare a quotation. In addition, systems and methods of thepresent invention allow modification of the data so that the relationaldatabase may be adapted to the needs of different suppliers.

[0012] The above object and other objects, features, and advantages ofthe present invention are readily apparent from the following detaileddescription of the preferred embodiment when taken in connection withthe accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

[0013]FIG. 1 is a work flow diagram illustrating work flow among a salesdepartment, design engineering department, process engineeringdepartment, and purchasing department, as well as the relationaldatabase;

[0014]FIG. 2 is a block diagram illustrating a preferred embodimentwherein a single relational database includes portions representingvehicle program information, part record information, processinformation, and sub-part information;

[0015]FIG. 3 illustrates the cooperation of various departments in apreferred embodiment; and

[0016]FIG. 4 illustrates an example of the flexibility of the relationaldatabase, illustrating a number of relations including processes,process parameters, and calculations with data that may be customized tosuit the needs of particular suppliers.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

[0017] In FIG. 1, a relational database is indicated at 10. Therelational database is recorded on a computer-readable medium and may beimplemented in a variety of ways as appreciated by one of ordinary skillin the art. Preferably, the relational database is implemented using adatabase management system (DBMS), such as SQL SERVER available fromMicrosoft. Sales department 12, design engineering department 14,process engineering department 16, and purchasing department 18 may allinteract with database 10. The sales department is also indicated at 20,receiving the quotation in a final stage. Sales department 20 has accessto additional information in database 22 so that sales department 20 maywork with the cost structure provided by the other departments todevelop a quote structure for the quotation being given to customer 24as report 26. The present invention also contemplates quotation formtranslation 28 for providing other language quotations. As shown, quotereports are present at each department (32, 34, 36, 38). Salesdepartment 20 also may create sales forecasts 30 as further describedbelow.

[0018] Although the preferred implementation illustrated in the drawingsrelates to an automotive quotation solution, embodiments of the presentinvention may be useful for other applications where customizedquotations and/or customized products are desired. The relationaldatabase 10 allows departments to collaborate only when necessaryresulting in improved quotation accuracy, reduced overhead expense, andaccelerated quotation delivery to customer 24. In addition, FIG. 1depicts preferred work flow, database, and reporting features. Preferredembodiments of the present invention, in addition to utilizingrelational database 10 to prepare quotations, facilitate long-termforecasting. In a preferred implementation, for example, in anautomotive quotation solution, vehicle set and vehicle volumeinformation are provided to sales department 20 via database 10 to allowcomprehensive sales and margin reporting. In a traditional approach,vehicle sets and vehicle volumes are gathered with a tedious processrequiring months of work and analysis to provide sales and marginreporting. In accordance with the present invention, by providing thisor other suitable information to relational database 10, theefficiencies of the quotation system and method of the present inventionmay be applied to long-term forecasting applications, as well asquotation preparation applications.

[0019] As FIG. 1 illustrates the relational database and associated workflows, it is understood that a suitable interface is provided so thatthe various departments may interface with relational database 10. Forexample, a web-based interface is preferred to allow access torelational database 10 from anywhere. Interfaces may be customized forindividual departments and further customized for contributors andapprovers. For example, sales department 12 may access relationaldatabase 10 via a new quote request screen that allows sales department12 to enter the description and specification into relational database10. Thereafter, the various other departments use appropriate interfacescreens to select, modify, and add parameters as necessary to developthe quotation. The interfaces for each department may be designedspecifically for that department such that only needed information isavailable. For example, design engineering department 14 is given aninterface that illustrates only information needed by design engineeringdepartment 14 and similarly for other departments. And as mentionedabove, interface screens may be further customized within a department,for example, contributors and approvers may have slightly differentinterfaces or permissions to modify values within relational database10.

[0020] In addition to the interface screens that correspond to the workflows, additional interface screens may be provided for users outside ofthe work flow. For example, a plant controller may use an administrativescreen to control certain parameters that apply to many or all parts(for example, labor rates).

[0021] It is appreciated that in accordance with the present invention,relational database 10 centralizes data associated with the quotationand overcomes shortcomings associated with spreadsheet passing and otherpreviously known techniques for generating quotations. In addition,relational database data may be modified or added to change the waycalculations are performed to meet the needs of a particular supplier orquotation preparer. If desired, the relations may be modified tointegrate with legacy systems at a supplier. And, as such, the abilityto customize the relations provides added flexibility that overcomesshortcomings associated with hard-coded quotation software used in thepast. Although some examples were given above for specific interfacetechniques to interface the departments to relational database 10, it isappreciated that those skilled in the art of relational databases anddatabase management systems understand that a wide variety of interfacesmay be used to achieve embodiments of the present invention, and thepresent invention is not limited to any particular form of databaseinterface. Further, although a preferred implementation of the presentinvention has been described with reference to materials, components,processes, and other elements applicable to automotive quotationsolutions, it is appreciated that the specific details and attributes ofrelational database 10 may vary widely as understood by one of ordinaryskill in the art of relational databases.

[0022]FIG. 2 illustrates that the relational database preferablyincludes other information (in an automotive supplier application), suchas vehicle program information 50, part record information 52, processinformation 54, and sub-part information 56, as well as information 58.FIG. 2 also illustrates an example of specific information for database10 underneath each sub-database. FIG. 3 further illustrates departments12, 14, 16, 18, 20 and illustrates other features and advantages of thepresent invention.

[0023]FIG. 4 illustrates an exemplary portion of a set of relations usedin an exemplary embodiment of the present invention. That is, data inrelational database 10 may be modified for a particular application, asneeded, overcoming problems associated with hard-coded software packagesused in the past. As shown in FIG. 4, a set of relations is generallyindicated at 100. Each relation includes a number of attributes, andindicates, where appropriate, keys. Relations 102, 104, 106, 108, and110 illustrate attributes relating to quotation identification and workflow. In accordance with a preferred embodiment of the presentinvention, relation 120 includes attributes related to process. Asshown, relation 120 includes process identification, process name, andmachine identification. Relation 122 includes machine identification andmachine name. Relation 124 includes process identification andcalculation identification. Relation 126 includes calculationidentification, calculation name, and equation description. Inaccordance with the present invention, data corresponding to equationdescription of relation 126 may be modified, as needed, to suit theneeds of a particular quotation preparer to allow customization of theinternal calculations of relational database 10. Further, relation 128includes attributes for process identification and parameteridentification, and relation 130 includes attributes for parameteridentification, and parameter name. That is, the calculation is afunction of parameters for a particular process to determine the cost ofthe process. In accordance with the present invention, the techniqueutilized to perform the calculation may be modified, as needed, for aparticular application. As such, data in relational database 10 can becustomized, as needed, for particular applications, without the extremeexpense associated with re-developing a hard-coded application from thestart.

[0024] In a preferred implementation of the relational database, theability to modify and add data includes the ability to add newprocesses. The ability to add new processes may be made available to thesupplier. In addition, new parameters and new calculations may beassociated with the new process. Similarly, embodiments of the presentinvention contemplate the ability to add new materials, new components,and other new information to relational database 10 without disturbingthe overall organization of the data.

[0025] Further, in a preferred embodiment, various parameters may beassigned to different user types. For example, a certain group ofparameters may be modifiable only by design engineers, another group ofparameters may be modifiable only by process engineers, and so on.

[0026] While embodiments of the invention have been illustrated anddescribed, it is not intended that these embodiments illustrate anddescribe all possible forms of the invention. Rather, the words used inthe specification are words of description rather than limitation, andit is understood that various changes may be made without departing fromthe spirit and scope of the invention.

What is claimed is:
 1. A system for use by various departments toprepare a quotation, the system comprising: a computer-readable mediumhaving a relational database recorded thereon, the relational databasebeing accessible by the various departments and providing centralizeddata including a plurality of relations to relate manufacturingprocesses, cost parameters, calculations, and work flows, the relationaldatabase being configured to allow modification of the data to changethe way calculations are performed; and an interface connected to therelational database and configured to allow access to the relationaldatabase.
 2. The system of claim 1 wherein the relational database hasadditional relations to relate product set and product volume among theother relations.
 3. The system of claim 1 further comprising: aplurality of customizable interfaces corresponding to the variousdepartments, each customized interface being connected to the relationaldatabase and configured to allow limited access to the relationaldatabase based on the corresponding department.
 4. The system of claim 1further comprising: a plurality of customizable interfaces correspondingto the various departments, each customized interface being connected tothe relational database and configured to allow limited access to therelational database based on the corresponding department and furtherbased on a user status from a group including contributors andapprovors.
 5. The system of claim 1 further comprising: anadministration interface connected to the relational database andconfigured to allow limited access to the relational database to modifyglobal cost parameters.
 6. The system of claim 1 wherein the datainclude calculations including an equation description that may bemodified to change the way calculations are performed.
 7. The system ofclaim 6 wherein the data may be modified by adding new processes.
 8. Thesystem of claim 6 wherein the data may be modified by adding new costparameters.
 9. The system of claim 6 wherein the data may be modified byadding new calculations.
 10. The system of claim 6 wherein the data maybe modified by adding data to the existing data.